Set up PAYE and Payroll
All companies must register as employers and set up their PAYE
(Pay As You Earn) scheme, even if they only have one employee. PAYE
is not a tax. It is a sophisticated system for collecting income
tax and National Insurance at source from earnings and pension
payments.
All employers must operate PAYE for every employee, irrespective
of whether they are part-time or "casual" workers,
students, or school leavers.
Registration for the PAYE Scheme can be done by applying online
via www.gov.uk, and it can take up to 5 working days to get your
employer's PAYE reference number.
Once registered for PAYE, an employer can either set up and run
payroll themselves using payroll software or hire a payroll
provider to do it for them.
